METROPOLITAN BANK & Trust Co. (Metrobank) saw its net income rise by 11.44% in the second quarter as it booked higher net interest earnings amid an expanded loan book and elevated rates.
The Ty-led bank’s attributable net income stood at P11.61 billion in the April-to-June period, up from P10.42 billion in the same period last year, according to its financial statement disclosed to the stock exchange on Thursday.
This brought its net profit for the first semester to a record P23.61 billion, rising by 12.95% year on year from P20.898 billion.
Metrobank’s first-half performance was driven by “robust asset expansion, stable margins, well-managed cost growth and healthy asset quality,” it said.
This translated to a return on average equity of 13.27%, up from 12.89% a year prior. Return on average assets also inched up to 1.48% from 1.46%.
“Our strong capital position and robust asset profile continued to support our expanding core businesses despite market challenges. Prospects of easing inflation driven by government efforts could further spur consumer demand,” Metrobank President Fabian S. Dee said.
“We are firmly on track to meet our medium-term growth aspirations as we support various public and private sector initiatives that continue to drive economic growth,” he added.
Metrobank’s net interest income grew by 13.87% to P29.27 billion in the second quarter from P25.71 billion in the same period last year.
The increase was driven by a 17.7% growth in interest earnings amid higher income on loans and receivables and on investment securities, which partly offset a 25.99% increase in interest and finance charges.
The bank’s net interest margin stood at 3.99% at end-June, slightly higher than 3.93% a year prior.
Meanwhile, other operating income fell by 20.01% to P5.45 billion in the second quarter from P6.81 billion a year ago amid lower net trading, securities and foreign exchange gains and despite a slight increase in fee and miscellaneous income.
Metrobank’s operating expenses climbed by 9.61% year on year to P18.39 billion amid higher manpower and transaction-related costs, among others.
Its cost-to-income ratio stood at 52.3% as of end-June.
The bank’s gross loans climbed 14.9% year on year at end-June on the back of a 15.2% increase in commercial loans and a 13.7% expansion in consumer loans.
“Net credit card receivables surged by 21.4%, while auto loans grew by 16.6%, sustaining the growth momentum in the consumer segment,” it said.
Even as it expanded its loan portfolio, Metrobank’s non-performing loan (NPL) ratio improved to 1.66% at end-June from 1.84% a year prior, while NPL cover was at 162.7% “to provide a substantial buffer against any emerging risks.”
Provisions for credit and impairment losses stood at P472 million in the second quarter, 77.68% less than the P2.12 billion set aside in the same period last year.
On the funding side, total deposits grew by 7.8% year on year to P2.4 trillion as of June, with low-cost current and savings account or CASA deposits making up 58% of the total.
This resulted in a loan-to-deposit ratio of 67.90%, up from 63.72% a year ago.
Metrobank’s consolidated assets expanded by 14.5% year on year to P3.3 trillion as of June.
Total equity stood at P355.09 billion.
Its capital adequacy ratio went down to 16.72% as of June from 17.9% a year prior. Its common equity Tier 1 ratio also dropped to 15.87% from 17.06%. Still, both remained well above the minimum levels required by the central bank.
Metrobank’s liquidity coverage ratio stood at a “substantial” 259.9%.
Its shares dropped by 70 centavos or 1.02% to close at P68 apiece on Thursday. — AMCS
